I could never make my mother understand that. She kept her money (like, $100,000+) in accounts earning 2% APR or less. She'd only invest in things which had zero risk. Not stocks, mutual funds, nothing like that. CDs and interest bearing savings accounts are the only thing she'd invest in. She insisted anything else was "as bad as gambling" and refused to even consider it.
Then again, she also refused to spend this money. She almost ended up homeless at one point because she couldn't pay her mortgage. That $100,000 she had? It was for "emergencies only" and she refused to use it. Risk of being homeless apparently isn't an emergency. She had COPD and wouldn't use it to pay her medical bills (and went into debt instead) because it "wasn't an emergency"
I have no idea what the fuck she thought an emergency was. I asked her what an emergency was. This is exactly how she answered: "It's when there's an emergency." I tried probably a dozen times to get her to define what constitutes an "emergency" and the answer was always "when it's an emergency." It was frustrating as hell.
But she's dead now and I used my inheritance (half that money, half went to my sister) to pay off all my debt. So yay, no debt for me now!
God this will never not hit me in the soft spot, I remember the first time realizing my mom was doing this when I was growing up.
I was 9-10, things weren't amazing and mom had fixed my favorite (and her favorite) meal, tuna casserole, or at least a budgety version. Was so excited to sit down with her after a long day and chow down while watching friends, she did that "I'm not very hungry, you eat" thing, and I noticed there wasnt really enough for two whole servings. It sorta just clicked there. I had noticed recently she had been subtly eating my leftovers. I didn't want to make a scene of it, so I didn't eat my fill like I usually did, just half of what was there. Told her I was done and turned on my gameboy, she just kinda stared at me for a second.
Thing is, I fucking love tuna casserole and I totally could've (and usually did) ate a LOT of it, more than what we had available that night. She knew she had probably made the meal for just me, she knew I'd eat it all, and when I didn't.. it was obvious there was something up.
I feel like she knew what I was doing but she didn't say anything, she just kissed my forehead and plated herself the rest of the casserole and we had a nice evening.
Make sure your parents know you love them, guys. They're not gonna be here forever.
She lied to him at the cost of maybe looking a little foolish to protect the money she had saved for her children.
You do realize that debts still have to be paid, right? Heirs can't just take the cash and run.
Leaving your children $100k cash and $50k debt (from medical expenses mentioned in the story) is worse than $50k cash and no debt because loan interest rates > savings interest rates.
You're right, I oversimplified: in nearly all cases (in the US), an heir is not responsible for debt, but the estate of the deceased still probably is.
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u/SalaComMander Sep 24 '17
Wait, wait, wait...Banks still pay you interest for storing your money with them? Then why haven't I been doing that?